UPS CEO Scott Davis was paid $9.5 million last year, a 73 percent jump from 2009

View full sizePaul Sakuma, Associated PressScott Davis, head of UPS, received a base salary of $1 million in 2010, but the bulk of his compensation was in the form of stock awards.

NEW YORK -- The chairman and chief
executive of United Parcel Service Inc. received total compensation last
year valued at $9.5 million, a 73 percent jump from 2009, according to
an analysis by the Associated Press.

Scott Davis, 58, received a
base salary of $1 million in 2010, the same as the year before,
according to a filing Monday with the Securities and Exchange
Commission. The bulk of his compensation, though, was in the form of
stock awards. Davis' stock was worth about $7.8 million at the end of
last year, more than double the $3.9 million his shares were worth at
the end of 2009.

He also received option awards valued at $437,514
last year, about the same as 2009. His performance-based cash bonus
jumped 78 percent to $232,000 from $130,523 in 2009.

Davis' perks
for things like life insurance, financial planning and healthcare
benefits slipped slightly from 2009, down 4 percent to $30,097.

UPS
said in a disclosure that "the increase in Davis' total compensation
reflects a long-running and deliberate effort" to increase the
compensation of its top three executives, if earnings performance
measures are met.

There was a freeze on all management salary
increases in 2009, but the board increased the "potential compensation" --
meaning stock awards and other parts of the package that fluctuate.

In
2010, the company met its earnings targets. UPS earned $3.49 billion or
$3.48 per share, up 62 percent from $2.15 billion, or $2.15 per share
in 2009.

Revenue rose 9 percent to $49.55 billion. The company's
stock price rose from $57.37 to $72.58 during the year. It closed Monday
at $74.09.

Davis, 58, has been in the top spot at the world's largest package delivery company since 2008.

UPS
expects to earn between $4.12 and $4.35 in 2011, mostly above its
adjusted profit in 2007, the year the recession began. It made $4.17 per
share in 2007, excluding one-time items. The recession began in
December of that year.

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